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2010 (9) TMI 415 - AT - Central ExciseJob work – Demand of duty and penalty - appellants inputs in the job work and cleared such final products without payment of duty to the persons who supplied the material - goods cleared by the appellants under 214/86 cannot be treated as exempted goods and, therefore, the question of applying Rule 6 of the Cenvat Credit Rules does not arise - no basis for demanding duty by disallowing credit attributable to materials used by the job worker Notification No. 214/86 dated 25.3.1986 is a special kind of notification. It does not exempt the goods manufactured by the job worker unconditionally. It merely postpones the time of payment of duty and also shifts the duty liability from the job worker, (who is actually a manufacturer) to the principal manufacturer (who supplied the raw material). Therefore, to treat the goods which have been cleared by job worker working under 214/86 as exempted goods is not justified.
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